I am an EU citizen and if I want to buy Huawei products, I don't want the U.S. to tell me not to, especially since you seem to conveniently forget that the U.S. has led many interventionist wars in order to forcibly open markets in other countries to its goods, so you don't have much moral ground to stand on here.
Additionally, the U.S. is also imposing tariffs on the EU and being abusive around the world, (Iran etc.) in general. The world is watching and American credibility is being eroded with moves like these, that's for sure.
International trade agreements can be renegotiated and confrontations can be managed professionally. The US would get much more done if it would have sane leadership.
But that's not what's happening. China just makes laws that require vendors to comply with censorship. You know, Germany does the same, only on different topics. Google and others have then decided not to do business in China, they weren't blocked.
The trade problem with China isn't about blocking companies, it's about state subsidies that China gives to key industries that are perceived as unfair.
Otherwise the default should be you block ours we block yours.
Free trade for all. Not just free trade for chinese product.